Oil Near 7-Year Peak Due to Tension Between Ukraine and Russia

Oil prices stabilized on Monday, February 14, in volatile trading, after hitting their highest levels in more than seven years, on fears that a possible Russian invasion of Ukraine would lead to US and European sanctions that would disrupt exports from one of the world’s largest producers.

Brent crude was down 11 cents, or 0.1%, at $94.33 a barrel by 09:10 GMT, after hitting a peak of $96.16 earlier, its highest level since October 2014.

US Texas crude rose one cent, or less than 0.1%, to $ 93.11 a barrel, hovering near its highest level during the session at $ 94.94, which is also the best since September 2014.

Statements from the United States about an imminent attack by Russia on Ukraine raised tensions in global financial markets.

Washington said yesterday that Russia could invade Ukraine at any time and could create a pretext for an attack.

The tension comes at a time when the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC +, are facing difficulties to increase production despite pledges made on a monthly basis to increase production by 400,000 barrels per day until March.

Investors are also watching ongoing talks between the United States and Iran to revive the 2015 nuclear deal.

An Iranian Foreign Ministry spokesman said on Monday that the talks had not reached a dead end, although a senior Iranian security official said earlier that progress in the talks had become “more difficult”.